Barriers to Establish a Cooperative to Manage a Machinery Rental Business in Farmer Groups: A Multi-Case Study Approach

Abstract

This study aimed to analyze the barriers faced by farmer groups in establishing a cooperative to manage a machinery rental business. The qualitative method with a multi-case study approach was used in this study with farmer groups as the research objects and chairpersons and members as the participants. The chairpersons were chosen by purposeful sampling and the members by snowball sampling. Data collection techniques were in-depth interviews and focus group discussions. The data credibility tests were triangulation and member checks. The results showed that all chairpersons and members positively responded to the cooperative and that the main barrier to establishing cooperatives in farmer groups was the absence of volunteers. The barriers for farmer groups that had volunteers included: (1) it was difficult to find members who wanted to become administrators because they felt they were unable to overcome the problem of shortage of operators and customers; (2) the obligation to make financial reports to the Cooperative Office and members; (3) management has not been able to prepare financial reports; and (4) expensive notary fees. Our recommendations for the Ministry of Agriculture are to assign agricultural extension civil servants as volunteers and to conduct operator training. The recommendation to the Ministry of Cooperatives is to guide the preparation of financial reports.